Question: Financial Leverage Microsoft Corporation (MSFT) reported the following data (In millions) for a recent year: Sales 93,580 Operating income 12,193 Average total assets 174,304 Average


Financial Leverage Microsoft Corporation (MSFT) reported the following data (In millions) for a recent year: Sales 93,580 Operating income 12,193 Average total assets 174,304 Average stockholders' equity84,93 1. Compute the return on total assets. Round to one decimal place 9% 2. Compute the return on stockholders' equity. Round to one decimal place 3. Compute the proit margin, esset turnover, and financial leverage metrics using the expanded DuPont formula. Round profit margin, asset turnover, and financiel leverege to two decimal places. Round returm on stockholders equity to one decimal place. Profiz margin Aczat turnover nancla leverage Raturn an stockholdars quity 4. Apple nc. has a Anancial leverage metric of 2.25. Des Apple or Microsaft use mora financlal leverage In Its operations? Apple
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
